According to reports, India's semiconductor market is expected to more than double to grow in the range of $100-110 billion by 2030.

The Indian semiconductor market was estimated to be around $45-50 billion in 2024-2025, up from $38 billion in 2023, the statement indicated, referencing industry estimates. According to reports, the Indian semiconductor market was valued at approximately $38 billion in 2023, projected to be between $45-50 billion in 2024-2025, and is anticipated to grow to $100-110 billion by 2030.

The demand for semiconductors, government initiatives, and industry reactions highlighted the challenges experienced by multiple technology sectors, particularly the automobile industry, due to reliance on specific regions during the Covid pandemic and emphasized the necessity of positioning India as a reliable partner in the global supply chain.

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At present, nations such as Taiwan, South Korea, Japan, China, and the US lead the semiconductor sector. Taiwan manufactures over 60 percent of global semiconductors, comprising almost 90 percent of the most sophisticated types. This reliance on one area has made worldwide supply chains vulnerable to considerable dangers - ranging from pandemics and natural catastrophes to geopolitical conflicts. Acknowledging this challenge, numerous countries are currently developing secure and varied supply chains.

The United States, European Union, Japan, and South Korea have initiated national plans to bolster local chip production and lessen dependence on one specific area. India is becoming a significant and reliable ally in this worldwide transition. The worldwide semiconductor market is projected to hit $1 trillion by 2030, with a significant share attributed to India's market.

India has the potential to become a significant player in the three main pillars of the semiconductor manufacturing supply chain - equipment, materials, and services, as well as research and development.

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In December 2021, the government initiated the India Semiconductor Mission with a budget of Rs 76,000 crore to offer financial assistance for investments in semiconductor fabrication, display production, and chip design, aimed at enhancing India's position in global electronics value chains.